Overview of ’s Economy Tokyo is the Hub of ’s Economic Activity Tokyo is the Hub of Japan’s Economic Activity

Population Land Area Number of Employed Persons Daytime Population Population Land Area Number of Employed Persons (based on workplace) (10.3%) 2 (0.6%) 128,057,352 377,955km2 62,990,756 13,159,388 2,189 km 8,450,981 (13.4%) 15,608,300 2010 2011 2008 2010 2011 2008 2010

Number of Establishments Number of Enterprises Ratio of Small and Medium Enterprises Number of Establishments Number of Enterprises Ratio of Small and Medium Enterprises 5,886,193 1,805,545 99.7% 684,895 (11.6%) 280,603 (15.5%) 99.1% 2009 2009 2009 2009 2009 2009

Number of Enterprises Capitalized Number of Foreign-Affiliated Firms Number of Enterprises Capitalized Number of Foreign-Affiliated Firms at 1 Billion Yen or More at 1 Billion Yen or More 2,346 (75.7%) 3,098 5,801 2,799 (48.3%) 2011 2009 2011 2009

Gross prefectural product Gross prefectural product Prefectural income per person (nominal) Prefectural income per person (nominal) 483.2165 trillion yen 2,791,000 yen 85.2016 trillion yen (17.6%) 3,907,000 yen (140.0%) FY2009 FY2009 FY2009 FY2009

Loans Outstanding of Banks Loans Outstanding of Banks (Domestically Licensed) (Domestically Licensed) 413.4966 trillion yen 168.8307 trillion yen (40.8%) end of December 2011 end of December 2011

Number of Foreign Visitors Number of Foreign Travelers to Tokyo 6.22 million 5.94 million 2011 2010

Number of Factories Value of Manufactured Export Value Import Value Number of Factories Value of Manufactured Goods Shipments Export Value Import Value Goods Shipments (Tokyo Port, , and Narita Airport) (Tokyo Port, Haneda Airport, and Narita Airport) 442,562 337.8640 trillion yen 65.5551 trillion yen 68.0511 trillion yen 40,137 (9.1%) 10.4819 trillion yen (3.1%) 14.0613 trillion yen (21.4%) 17.6487 trillion yen (25.9%) 2008 2008 2011 2011 (preliminary) 2008 2008 2011 (preliminary) 2011 (preliminary)

Number of Stores Annual Sales of Goods (Wholesale, Retail) Number of Universities Number of Research Institutes Number of Stores Annual Sales of Goods Number of Universities Number of Research Institutes for (Wholesale, Retail) for National Sciences (Wholesale, Retail) (Wholesale, Retail) National Sciences 1,472,658 548.2371 trillion yen 780 6,087 2009 149,965 (10.2%) 182.2113 trillion yen (33.2%) 139 (17.8%) 944 (15.5%) 2009 2007 2007 FY2011 *includes establishments owned by national and local governments 2007 2007 FY2011 * includes establishments owned by national and local governments

Ratio of Tertiary Industry Persons Engaged in Work Services Production Value Number of Establishments of the Information Ratio of Tertiary Industry Persons Engaged in Work Services Production Value Number of Establishments of the Information and Communications Industry and Communications Industry (22.6%) 68.8% 115.6437 trillion yen 77,901 80.7% 26.1695 trillion yen 25,689 (33.0%) 2007 FY2009 2009 2007 FY2009 2009

Note: Percentage in parentheses represent the proportion to the national total

[Sources] • Geographical Survey Institute, MLIT "Land Survey of Prefectures, Shi, Ku, Machi and Mura" • CAO "Annual Report on Prefectural Accounts" [Sources] • Geographical Survey Institute, MLIT "Land Survey of Prefectures, Shi, Ku, Machi and Mura" • CAO "Annual Report on Prefectural Accounts" • MEXT "Basic Survey of Schools" • MIC "Population Census", "Economic Census for Business Frame" and "Employment Status Survey" • BOJ "Deposits and Loans Market" • MIC "Population Census", "Economic Census for Business Frame" and "Employment Status Survey" • TMG "Census of Manufactures" • Japan National Tourism Organization (JNTO) "Visitor Arrivals and Japanese Overseas Travelers" • METI "Census of Manufactures" ,"Census of Commerce" • TMG Bureau of Industrial and Labor Affairs "Survey on the - Number of tourists and other data" • BOJ "Deposits and Loans Market" • Small and Medium Enterprise Agency "White Paper on Small and Medium Enterprises in Japan" • MOF "Trade Statistics of Japan" • TMG Bureau of Industrial and Labor Affairs research • METI "Census of Commerce" • Toyo Keizai, Inc. "Foreign Affiliated Companies in Japan - A Comprehensive Directory" • MEXT "Basic Survey of Schools" • Toyo Keizai, Inc. "Foreign Affiliated Companies in Japan - A Comprehensive Directory" • Tokyo Customs "Trade Statistics"

2 Industry and Employment in Tokyo − A Graphic Overview 2012 Industry and Employment in Tokyo − A Graphic Overview 2012 3 Overview of Tokyo’s Economy Tokyo's Economic Base and Characteristics Tokyo, Where Economic Activities are Internationally Active

1 Tokyo Has an Enormous Economy Equal to a Country Gross prefectural product (nominal) and income 4 Financial Functions in Tokyo with Great International Influence (Trillion US dollars) Market capitalization, number of listed companies, (Trillion yen) per person by prefecture (FY2009) (1,000 yen) 25 and stock trading volume by exchange (worldwide, 2011) 120 5,000 (100 Billion Breakdown of deposits, loans, and bills cleared by prefectures (2011) US dollars) Income per person (right axis) GDP by country (Nominal) (2009) (%) 20 138.6 0 20 40 60 80 100 140 100 3,907 4,000 New York 11.8 85.2 100 Deposits 15 80 3,086 Tokyo 31.3 8.8 5.6 5.14.0 Other 45.2 2,970 volume) trading (Stock 2,879 2,867 2971 3,000 632.2 trillion yen NASDAQ 80 3.8 60 Kanagawa Aichi 60 50.4 49.9 10 2,000 Euronext 33.0 Loans 2.4 40 40 35.8 40.8 8.8 4.34.03.5 38.6 Germany1.2 26.2 31.9 29.7 413.5 trillion yen Shanghai Tokyo 21.7 21.1 15.9 5 London 20 14.6 13.5 13.4 12.5 10.0 2.4 Hong Kong 3.3 Toronto 9.2 8.8 8.3 7.9 20.4 19.2 1,000 Bovespa 3.3 20 0 Gross prefectural product (Nominal) 1.2 2.3 Osaka 0.2 1.9 0

UK Bills cleared USA Italy 0 73.9 8.3 3.3 14.5 India 0 0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500

Brazil 379.6 trillion yen Spain Korea China Japan Tokyo Russia France Mexico Canada (Number of listed companies) (Company) Australia Germany Aichi Osaka Tokyo Note: Market capitalization and number of listed companies: values at the end of Netherlands Saitama Note: Deposits includes a negotiable deposit. Deposits and loans: values at the end of December. Stock trading volume: annual value. Bubble size indicates the market Note: Figures for Tokyo and Australia are fiscal year. Kanagawa December. Bills cleared: values of annual total. capitalization (only domestic stocks). Source: CAO “Annual Report on Prefectural Accounts” Source: CAO “Annual Report on Prefectural Accounts” Source: BOJ “Deposits and Loans Market” and JBA materials Source: WFE “Monthly reports”

(%) Value of trade and rate of increase/decrease in Tokyo Harbor Has Seen a Great Increase in Imports Population pyramid by age and gender 2 350 value of imports and exports by importer and exporter 5 Work and School Commuters Come Together in Tokyo 6 Rapid Advance in Declining Birthrate/Aging Population And Exports with China (Tokyo port; 2011/2001) 90 years old Male Populationor pyramid more by age and genderFemale 300 Value of imports and exports (Tokyo port) Population based on place of work and schooling (2010) 85−8990 years old (Trillion yen) Population 2035 (Estimates)Male 80−84 or more Female 250 Daytime Population 75−79 9 Mideast Europe & Population based on place of work and schooling (2010) 85−89 in value of imports) of value in 13.16 million Korea Russia, etc. 15.61 million 70−74 80−84 200 69.1 Population 2035 (Estimates) 8 8.1 increase/decrease of (Rate 15.5 Daytime Population 65−69 75−79 China *Including “unreported Labor force status” 13.16 million 60−64 438.3 15.61 million Working or 70−74 7 150 2010 55−59 65−69 Central & South Asia *Including “unreported Labor force status”schooling in Tokyo 50−54 America 813.4 6.21 million 60−64 6 100 Working or 45−49 55−59 5.1 Import 30.5 2010 40−44 5 Western Oceania schooling in Tokyo 50−54 4.7 Middle East (Rate of increase/decrease 6.21 million 35−39 50 Europe 14.2 8.2 45−49 4 179.8 Taiwan in value of exports) Neither working 30−34 40−44 53.6 nor schooling 25−29 Export 0 35−39 3 3.7 3.90million 20−24 Hong Kong Africa Neither working 15−19 30−34 4.6 nor schooling 25−29 2 −50 North America 37.0 Working or schooling 1985 10−14 217.4 Working3.90million or 5−9 20−24 from other 15−19 1 −100 prefectures schooling in other 0−4 2.92Working million or schooling prefectures 1985 10−14 0 −100 −50 0 50 100 150 200 250 300 350 400 from other 0.47 millionWorking or 75 35 0 05−9 35 75 1991 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 (%) prefectures schooling in other (10,000 people)0−4 2.92 million prefectures Note: Bubble size is the trade value in 2011 (total of import and export value). Preliminary results. 0.47 million 75 35 0 0 35 75 Note: 2011 figures are preliminary results. Unit: 10 billion yen. Bubbles made with narrow lines represent the value constituted by Asia. Note: Extracted preliminary results. (10,000 people) Source: Tokyo Customs “Tokyo Port Trade Statistics” Source: Tokyo Customs “Tokyo Port Trade Statistics” Source: MIC “Population Census” Source: MIC “Population Census” and National Institute of Population and Social Security Research “Household Projection for Japan Prefectures”

(%) Aging percentage by country region (Tokyo, worldwide) Population by birth year and by age Haneda Airport is Expected to Enlarge as a Distribution Point Breakdown of volume of cargo handled by domestic (10,000 people) 35 Japan 3 ights at airports (2010) Born in 1950 Estimates Tokyo 35 Volume of cargo handled, number of passengers (Haneda airport) (%) 30 Germany (10,000 tons) (Million people) Korea 30 Number of passengers 66.8 25 23.0 100 (right axis) 70 Sweden 61.9 64.2 Other UK 17.2 25 20.4 58.7 60 Born in 1970 20 USA 80 77.3 Airport 22.6 China 73.3 76.1 2.1 50 20 20.1 18.1 15 60.9 60 59.3 Osaka International Volume of cargo Haneda Airport Born in 1980 15.9 40 Airport 39.5 15 10 6.9 handled in Born in 1960 76.2 domestic ight: 14.2 5.3 30 10 40 72.1 72.5 1.84 million tons 5 58.5 58.6 Fukuoka Airport Domestic ight cargo 10.5 Born in 1990 3.5 20 5 0 20 1955 60 65 70 75 80 85 90 95 2000 05 10 15 20 25 30 35 International ight cargo 10 Shin-Chitose 0 Other than Tokyo and Japan: Estimated medium values in a year. Tokyo and Japan in 2010 or Airport Note: 2.5 0.7 1.1 1.2 3.6 Airport before: Actual values in “Population Census.” Japan in 2015 or later: Estimated medium values 0 0 11.6 12.3 based on “Population Census” (2010). Tokyo in 2015 or later: Estimated medium values based on 2001 02 03 04 05 06 07 08 09 10 “Population Census” (2005). Since the standard year of the estimated value for Tokyo is 2005, the value in 2010 and values after it are not connected.

0 years old 0 years old 5 years Source: MIC “Population Census"; National Institute of Population and Social Security Research Note: Volume of cargo handled is total of loaded and unloaded cargo old 10 years old 15 years old 20 years old 25 years old 30 years old 35 years old 40 years old 45 years old 50 years old 55 years old 60 years “Household Projection for Japan Prefectures” and United Nations “World Population Prospects, Source: MLIT “Airport Management Report” Source: MLIT “Airport Management Report” Source: MIC “Population Census” the 2010 Revision”

The GDP of Tokyo which is the center of the Japanese economy is large: i.e. one city’s economy is equivalent to that of a country. In addition, the gross prefectural The Japanese financial functions are concentrated in Tokyo and the total amount of funds handled is the highest in the whole country. In addition, the market scale product and the income per person are prominently high compared with other prefectures. Tokyo port which is the main international trade port in Japan is of the Tokyo Stock Exchange is a world leader and has one of the strongest international influence. Tokyo, where work and school commuters come together, has a increasing the import values in recent years and the volume of trade with China is increasing. The number of passengers passing through Haneda airport, which daytime population of about 15 million but because of the big increase in aged people, the population at 65 to 69 years old is expected to the highest in the range is the gateway of Tokyo, is more than 60 million and the volume of cargo handled in domestic flights has been more than 0.7 million tons. It handled 39.5% of of age in 2035. In addition, because of the large number of higher education institutions and corporations located there, the population in their twenties tends to domestic cargo in 2010, which was the highest ratio among all airports in Japan. Since the international flight terminal has been expanded, usage of Haneda airport increase but declining birthrate causes the population as a whole to decrease yearly. The percentage of the population aged 65 years or older in Japan and Tokyo is is expected to increase in the future. increasing rapidly compared with the global percentage and this is expected to rise in the future.

4 Industry and Employment in Tokyo − A Graphic Overview 2012 Industry and Employment in Tokyo − A Graphic Overview 2012 5 Overview of Tokyo’s Economy Tokyo's Economic Base and Characteristics Service Industries in Tokyo are Progressing Increasingly by Pioneering New Fields

1 Industries in Tokyo Include a lot of Establishments with 9 Employees or Less 2 Tokyo Economics Featuring Changes to Services Gross metropolitan production by economic activities Gross metropolitan production (Nominal) by economic activities (FY2009), Breakdown of number of enterprises by industry (2009) (Trillion yen) (nominal), percentage of tertiary industry (%) (%) Growth rate of gross metropolitan production (FY2009/FY1999) Number of establishments and national comparison (%) 140 87.0 90 20 by industry (2009) 84.0 Tokyo (1,000 establishments) (%) 0 20 40 60 80 100 80 Real estate 180 Number of establishments 35 120 Ratio of tertiary industries (right axis) 74.9 10 Service activities 33.0 69.8 Nationwide Private non-pro table 160 National comparison (right axis) 70 service in family budget 30 Private non-pro table service in family budget Construction Wholesale and 100 Government services 140 Nationwide Manufacturing2.7 retail trade Government services 60 0 25 3.1 1.4 10.1 5.3 5.43.6 5.1 Electricity, (1.8 million enterprises) 18.4 15.3 26.2 120 80 gas and Transport and communications 168 19.3 25.0 Service activities 50 water supply 100 20 −10 15.1 26.2 Construction Finance and insurance 80 13.2 60 Transport and communications 40 11.2 12.3 12.5 11.2 15 Information and communications Agriculture, and forestry, sheries 10.8 10.8 10.3 Real estate 60 9.7 10.2 Electricity, gas 12.0 30 −20 Mining industries Wholesale and 8.1 10 Tokyo Primary industries 11.9 14.2 6.8 2.1 25.4 1.6 12.1 8.1 6.3 4.1 5.0 40 12.3 and water supply Finance and insurance retail trade 40 98 (0.28 million enterprises) 10.9 60 62 50 5 20 Secondary industries 20 47 46 38 40 19.3 Wholesale and retail trade −30 Manufacturing 26 19 11 17 20 15.8 Tertiary industries 0 0 10 10.6 Manufacturing 7.6 Construction −40 Agriculture and forestry Fisheries 0 0 (Growth rate of gross metropolitan production) 2000 01 02 03 04 05 06 07 08 09 (FY) 0 5 10 15 20 25 30 Mining and quarrying of stone and gravel Electricity, gas, heat supply and water Note: Nationwide tertiary industry percentage in the calendar year. Taxes charged on imported (Gross Metropolitan Production) (Trillion yen) and leasing and Information and communications Transport and postal activities goods, custom duties and deductions such as input interest are excluded.

Construction Bar graph: Gross production Services, n.e.c. Manufacturing

drinking services drinking Source: TMG “Annual Report on Prefectural Accounts” and MIC “Annual Report of National Accounts” Source: TMG “Annual Report on Prefectural Accounts”

technical services technical Finance and insurance Real estate and goods rental and leasing Scienti c research, professional and technical services Accommodations, eating and drinking services

Finance and insurance Living-related and personal services and amusement services Education, learning support Living-related and personal and Living-related Real estate and goods rental goods and estate Real Wholesale and retail trade Accommodations, eating and eating Accommodations, Transport and postal activities postal and Transport

Education, learning support Medical, health care and welfare

Medical, health care and welfare and care health Medical, High Percentage of New Businesses Entering in Medical, Health Care and Welfare, Information and Communications services and amusement services services amusement and services Information and communications and Information Services, n.e.c. 3 Scienti c research, professional and professional research, Scienti c Entering status of new businesses by industry (2010) Entering elds on which the most eorts are focused (2010) Source: MIC “Economy Census for Business Frame” Source: MIC “Economic Census for Business Frame” 0 10 20 30 40 (%) Sightseeing-related eld 1.3 No response 0.3 (%) All industries 17.5 3.0 3.1 Design and fashion-related eld 1.5 Breakdown of number of establishments by industry Breakdown of number of employed persons aged 15 or more Construction 11.0 1.7 1.7 and by size of persons engaged (2009) by industry and employment status (nationwide, 2010) Manufacturing 15.1 4.1 3.0 Agricultural business-related eld 1.8 Related to health/ Other 0 20 40 60 80 100 (%) Information and communications 25.8 4.5 3.5 medical care/ 0 20 40 60 80 100 (%) 15.7 welfare All industries All industries Transport and postal activities 10.9 1.7 Plan to enter in near future Crisis management-related 20.8 Agriculture, forestry, sheries (0.1) Wholesale 17.6 3.1 2.6 eld 2.1 Agriculture, forestry, sheries (4.2) Related to new Construction (6.9) Retail trade 14.4 2.6 6.2 Animation and energy/environment Construction (7.9) content-related eld 2.3 16.2 Real estate 15.9 2.3 4.5 Manufacturing (8.7) Goods rental and leasing 23.3 3.3 Education-related eld3.9 Scienti c research, professional and 23.1 2.5 1.7 Information and communications (3.8) Manufacturing (16.3) technical services Related to Accommodations, eating and outsourcing Transport and postal activities (2.8) drinking services 18.7 2.2 6.6 Once entered but Social infrastructure eld 4.4 withdrew 9.3 Living-related and personal services 13.7 and amusement services Living-related services eld 4.6 Information and communications Related to (2.8) Medical, health care and welfare Already entered 38.6 Transport and postal activities Related to information & food business Wholesale and retail trade (5.5) Services, n.e.c. 21.1 4.7 4.3 communications technology 8.2 (24.6) 7.7 Note: New businesses are those which have been established in the past 10 years and are in new fields different from existing fields. In addition, newly established businesses in the past 10 years are Note: Questions to companies that have entered new businesses in the past 10 years classified as new businesses. (excluding withdrawal) Wholesale and retail trade (17.0) Source: TMG Bureau of Industrial and Labor Affairs Research Source: TMG Bureau of Industrial and Labor Affairs Research Finance and insurance (1.6)

Real estate and goods rental and leasing (9.0) Finance and insurance (2.6) Real estate and goods rental and leasing (2.0) Scienti c research, professional and Scienti c research, professional and technical services (6.7) technical services (3.2) 4 The number of foreign visitors has greatly decreased because of the influence of earthquake Accommodations, eating and drinking services (6.0) (Total number of Total number of tourist visits and value of (10,000 people) Living-related and personal services tourist visits:1 million) tourism consumption by region of residence (Trillion yen) Number of foreign visitors by country region (nationwide) Accommodations, eating and (14.3) and amusement services (3.9) 1,000 drinking services 600 5 861.1 Education, learning support (4.6) Tourism consumption (right axis) 4.5 900 Australia Living-related and personal services and 800 184.5 (7.2) 500 3.9 Other amusement services Medical, health care and welfare (10.6) Overseas residents 463.1 4 679.0 5.9 700 621.9 Education, learning support (2.5) 3.5 UK 400 4.8 50.9 Medical, health care and welfare (5.6) Services, n.e.c. (5.9) 600 Hong Kong 370.2 3 72.7 134.0 Services, n.e.c. (5.8) 4.2 Non-Tokyo prefectural residents 214.9 477.2 U.S.A. Regular sta and Dispatched employees Part-time employees 183.1 500 employees from worker dispatch oces and others 300 China 141.3 36.5 1 to 4 persons 5 to 9 persons 10 to 19 persons 20 to 29 persons 166.7 113.7 56.6 Directors Self-employed, Self-employed, not employing 2 400 30 to 49 persons 50 to 99 persons 100 to 199 persons 200 to 299 persons employing others others (including home workers) 104.4 200 300 Taiwan 126.8 300 persons and over Dispatched employees only Family workers Unknown 69.2 39.1 99.4 232.8 242.3 1 200 100 199.3 80.7 Note: Values in brackets on the right of the graph are the breakdown of all private Note: Values in brackets on the right of the graph are the breakdown by industry of the total Tokyo residents Korea 244.0 companies by industry. The width of each industry corresponds to the breakdown by number of employed persons aged 15 or more. The width of each industry corresponds 100 165.8 industry. Since “mining and quarrying of stone and gravel,” “electricity, gas, heat supply to the breakdown by industry. Since “mining and quarrying of stone and gravel,” 113.4 and water,” “compound services,” “government except elsewhere classified” have been “electricity, gas, heat supply and water,” “compound services,” “government except 0 0 0 excluded, the total number of industries should not equal to 100. elsewhere classified” have been excluded, the total number of industries should not 2004 05 06 07 08 09 10 2001 02 03 04 05 06 07 08 09 10 11 Source: MIC “Economic Census for Business Frame” equal to 100. Extracted preliminary results Note: Because of changes to investigation standards in 2010, a simple comparison with previous Source: MIC “Population Census” values cannot be made. Note: The values for 2011 are estimates Source: TMG “Survey on Tourism in Tokyo-the Number of tourists and other data” Source: Japan National Tourism Organization (JNTO) “Statistics - Foreign visitors to Japan”

The wholesale and retail trade has the largest number of establishments in Tokyo; i.e. 168 thousand and the nationwide percentage is the highest for information The percentage of tertiary industry in Tokyo is changing over the nationwide value and the gross metropolitan production of service activities is the highest of all and communications; i.e. 33%. The breakdown of the number of enterprises for information and communications in Tokyo is higher than the nationwide percentage; tertiary industry: i.e. 26.2 trillion yen. The growth rate of gross metropolitan production compared with that of 10 years ago is the highest in the service activities and i.e. indicating concentration of information and communications in Tokyo. In addition, the special feature is the high breakdown of service-related establishments the service-based economy in Tokyo is further advancing. A lot of companies in Tokyo are entering new business in various fields. Fields related to health, medical such as real estate and goods rental and leasing, scientific research, professional and technical services, accommodations, eating and drinking services. In terms of care, and welfare is at the top of the list. The number of tourists in Tokyo exceeded 4.6 million in 2010 and the national number was 8.611 million; an all-time high. the number of employees per establishment, small-scaled establishments with 9 employees or less account for 70 % or more in most industries. For employees aged However, the number of foreign visitors in the whole country of 2011 decreased greatly due to the influence of earthquake. 15 or more, there are a lot of non-regular employees in accommodations, eating and drinking services, living-related and personal services, and amusement services.

6 Industry and Employment in Tokyo − A Graphic Overview 2012 Industry and Employment in Tokyo − A Graphic Overview 2012 7 Overview of Tokyo’s Economy Tokyo's Economic Base and Characteristics Population, Aging Rate, and Status of Establishments in Tokyo by Creative Establishments Concentrated in 23 Wards Ward, City, Town, and Village

1 Population, Aging Rate 1 Software (5,422 establishments) 2 Publishing (5,136 establishments) Population, aging rate (2010) Number of Establishments (2009) Number of Establishments (2009)

Okutama-machi Okutama-machi Okutama-machi Ome-shi Ome-shi Ome-shi Adachi-ku Adachi-ku Adachi-ku Mizuho-machi Kiyose-shi -ku Mizuho-machi Kiyose-shi Itabashi-ku Mizuho-machi Kiyose-shi Itabashi-ku Higashi- Musashi- Kita-ku Higashi- Kita-ku Hamura-shi Kita-ku Hamura-shi Musashi- Murayama-shi Murayama-shi Higashi- Higashi--shi Hamura-shi Musashi- Murayama-shi Hinode-machi Murayama-shi Higashi-Kurume-shi -ku Hinode-machi Hinode-machi Murayama-shi Higashi-Kurume-shi Nerima-ku -ku Murayama-shi Nerima-ku Katsushika-ku Higashi-Yamato-shi Arakawa-ku Arakawa-ku Katsushika-ku Higashi-Yamato-shi Arakawa-ku Fussa-shi Higashi-Yamato-shi Nishi-Tokyo-shi -mura Fussa-shi -ku Hinohara-mura Fussa-shi Nishi-Tokyo-shi Toshima-ku Akiruno-shi Kodaira-shi Nishi-Tokyo-shi Akiruno-shi Kodaira-shi Tachikawa-shi Nakano-ku Bunkyo-ku Sumida-ku Hinohara-mura Akiruno-shi Kodaira-shi Toshima-ku Tachikawa-shi Nakano-ku Bunkyo-ku Sumida-ku Tachikawa-shi Taito-ku Sumida-ku Akishima-shi Musashino-shi Taito-ku Akishima-shi Bunkyo-ku Akishima-shi Musashino-shi Taito-ku Kokubunji-shi -ku -ku Kokubunji-shi Nakano-ku Kokubunji-shi Suginami-ku Shinjuku-ku Koganei-shi Koganei-shi Musashino-shi Koganei-shi Chiyoda-ku Edogawa-ku Suginami-ku Shinjuku-ku Chiyoda-ku Edogawa-ku Kunitachi-shi Mitaka-shi Kunitachi-shi Kunitachi-shi Mitaka-shi Koto-ku Mitaka-shi Chiyoda-ku Edogawa-ku Koto-ku Hachioji-shi Fucyu-shi -ku (Population) Hachioji-shi Fucyu-shi Shibuya-ku Hino-shi Chuo-ku Fucyu-shi Shibuya-ku Chuo-ku Koto-ku Hino-shi Chuo-ku Chofu-shi 500,000 or more people Hachioji-shi Hino-shi Chofu-shi Minato-ku Chofu-shi Minato-ku -ku Setagaya-ku -shi Komae-shi -ku 200,000 to less than 500,000 people Minato-ku Inagi-shi Komae-shi Meguro-ku Tama-shi Tama-shi Setagaya-ku Tama-shi Komae-shi Meguro-ku -ku 100,000 to less than 200,000 people Inagi-shi Shinagawa-ku 10,000 to less than 100,000 people Shinagawa-ku Machida-shi Machida-shi Ota-ku Without color: Less than 10,000 people 500 or more establishments Ota-ku 1,000 or more establishments Machida-shi Ota-ku 100 to less than 500 establishments 100 to less than 1,000 establishments (Aging rate) Oshima-machi Niijima-mura Miyake-mura Hachijo-machi Ogasawara-mura 30% or more 50 to less than 100 establishments 50 to less than 100 establishments 20% to less than 30% 10 to less than 50 establishments 10 to less than 50 establishments 18% to Toshima-mura Kozushima-mura Mikurajima-mura -mura Less than 10 establishments Less than 10 establishments less than 20% Without mark: Less than 18% Source: MIC “Population Census” Source: TMG Bureau of Industrial and Labor Affairs Research Source: TMG Bureau of Industrial and Labor Affairs Research

2 Number of Establishments and Employed Persons 3 Advertising (6,807 establishments) 4 Design Services (4,164 establishments)

Number of Establishments and Employed Persons (2009) Number of Establishments (2009) Number of Establishments (2009)

Okutama-machi Ome-shi Okutama-machi Okutama-machi Ome-shi Ome-shi Adachi-ku Itabashi-ku Adachi-ku Adachi-ku Mizuho-machi Kiyose-shi Itabashi-ku Mizuho-machi Kiyose-shi Itabashi-ku Mizuho-machi Kiyose-shi Kita-ku Higashi- Higashi- Hamura-shi Musashi- Hamura-shi Musashi- Murayama-shi Kita-ku Hamura-shi Musashi- Murayama-shi Kita-ku Hinode-machi Higashi- Higashi-Kurume-shi Hinode-machi Nerima-ku Hinode-machi Nerima-ku Murayama-shi Murayama-shi Nerima-ku Murayama-shi Higashi-Kurume-shi Katsushika-ku Murayama-shi Higashi-Kurume-shi Katsushika-ku Arakawa-ku Katsushika-ku Higashi-Yamato-shi Arakawa-ku Higashi-Yamato-shi Arakawa-ku Higashi-Yamato-shi Nishi-Tokyo-shi Toshima-ku Fussa-shi Nishi-Tokyo-shi Fussa-shi Nishi-Tokyo-shi Fussa-shi Hinohara-mura Akiruno-shi Kodaira-shi Toshima-ku Hinohara-mura Akiruno-shi Kodaira-shi Toshima-ku Hinohara-mura Nakano-ku Bunkyo-ku Sumida-ku Nakano-ku Bunkyo-ku Sumida-ku Akiruno-shi Kodaira-shi Bunkyo-ku Sumida-ku Tachikawa-shi Tachikawa-shi Akishima-shiTachikawa-shi Taito-ku Akishima-shi Kokubunji-shi Musashino-shi Taito-ku Akishima-shi Kokubunji-shi Musashino-shi Taito-ku Nakano-ku Koganei-shi Suginami-ku Shinjuku-ku Koganei-shi Suginami-ku Shinjuku-ku Kokubunji-shi Musashino-shi Shinjuku-ku Chiyoda-ku Edogawa-ku Chiyoda-ku Edogawa-ku Koganei-shi Suginami-ku Kunitachi-shi Mitaka-shi Kunitachi-shi Mitaka-shi Chiyoda-ku Edogawa-ku Koto-ku Koto-ku (Number of Establishments) Kunitachi-shi Mitaka-shi Hachioji-shi Fucyu-shi Shibuya-ku Hachioji-shi Fucyu-shi Shibuya-ku Koto-ku Hino-shi Chuo-ku Hino-shi Chuo-ku 20,000 or more establishments Fucyu-shi Shibuya-ku Chuo-ku Chofu-shi Minato-ku Chofu-shi Minato-ku Hachioji-shi Hino-shi Setagaya-ku Setagaya-ku 10,000 to less than 20,000 establishments Chofu-shi Inagi-shi Komae-shi Meguro-ku Inagi-shi Komae-shi Meguro-ku Minato-ku Tama-shi Tama-shi 3,000 to less than 10,000 establishments Tama-shi Komae-shi Setagaya-ku Shinagawa-ku Shinagawa-ku 1,000 to less than 3,000 establishments Inagi-shi Meguro-ku Less than 1,000 establishments Shinagawa-ku Machida-shi Machida-shi 1,000 or more establishments Ota-ku 500 or more establishments Ota-ku (Number of employed persons) Oshima-machi Niijima-mura Miyake-mura Hachijo-machi Ogasawara-mura Machida-shi 100 to less than 1,000 establishments 100 to less than 500 establishments 200,000 or more Ota-ku employed persons 50 to less than 100 establishments 50 to less than 100 establishments 100,000 to less than 200,000 employed persons 10 to less than 50 establishments 10 to less than 50 establishments 50,000 to less than Toshima-mura Kozushima-mura Mikurajima-mura Aogashima-mura 100,000 employed persons Note: Includes establishments owned by national and Less than 10 establishments Less than 10 establishments Without mark: Less than 50,000 local governments. employed persons Source: TMG “Economy Census for Business Frame” Source: TMG Bureau of Industrial and Labor Affairs Research Source: TMG Bureau of Industrial and Labor Affairs Research

3 Number of Newly-Organized Establishments 4 Number of Abolished Establishments 5 Designer Fashion (326 establishments) 6 Animation Production (200 establishments)

Number of Newly-Organized Establishments (2006 to 2009) Number of Abolished Establishments (2006 to 2009) Number of Establishments (2009) Number of Establishments (2009) Okutama-machi Okutama-machi Ome-shi Ome-shi Kiyose-shi Kiyose-shi Mizuho-machi Itabashi-ku Adachi-ku Okutama-machi Okutama-machi Itabashi-ku Adachi-ku Higashi- Ome-shi Mizuho-machi Higashi- Musashi- Kita-ku Ome-shi Hamura-shi Musashi- Kita-ku Hamura-shi Murayama-shi Hinode-machi Murayama-shi Hinode-machi Murayama-shi Higashi-Kurume-shi Murayama-shi Higashi-Kurume-shi Nerima-ku Arakawa-ku Katsushika-ku Adachi-ku Nerima-ku Katsushika-ku Higashi-Yamato-shi Kiyose-shi Itabashi-ku Adachi-ku Higashi-Yamato-shi Arakawa-ku Toshima-ku Mizuho-machi Mizuho-machi Kiyose-shi Itabashi-ku Hinohara-mura Fussa-shi Nishi-Tokyo-shi Higashi- Fussa-shi Nishi-Tokyo-shi Toshima-ku Akiruno-shi Tachikawa-shi Kodaira-shi Higashi- Hinohara-mura Akiruno-shi Kodaira-shi Nakano-ku Bunkyo-ku Sumida-ku Hamura-shi Musashi- Murayama-shi Kita-ku Kita-ku Tachikawa-shi Bunkyo-ku Sumida-ku Hinode-machi Nerima-ku Hamura-shi Musashi- Murayama-shi Nakano-ku Akishima-shi Kokubunji-shi Musashino-shi Taito-ku Murayama-shi Higashi-Kurume-shi Katsushika-ku Hinode-machi Murayama-shi Higashi-Kurume-shi Nerima-ku Akishima-shi Kokubunji-shi Musashino-shi Taito-ku Shinjuku-ku Katsushika-ku Shinjuku-ku Koganei-shi Suginami-ku Edogawa-ku Higashi-Yamato-shi Arakawa-ku Arakawa-ku Koganei-shi Suginami-ku Chiyoda-ku Fussa-shi Nishi-Tokyo-shi Higashi-Yamato-shi Edogawa-ku Kunitachi-shi Mitaka-shi Hinohara-mura Kodaira-shi Toshima-ku Fussa-shi Nishi-Tokyo-shi Toshima-ku Kunitachi-shi Mitaka-shi Chiyoda-ku Koto-ku Akiruno-shi Sumida-ku Hinohara-mura Akiruno-shi Kodaira-shi Koto-ku Shibuya-ku Tachikawa-shi Nakano-ku Bunkyo-ku Tachikawa-shi Nakano-ku Bunkyo-ku Sumida-ku Shibuya-ku Hachioji-shi Hino-shi Fucyu-shi Hachioji-shi Hino-shi Fucyu-shi Chuo-ku Chuo-ku Akishima-shi Kokubunji-shi Musashino-shi Taito-ku Akishima-shi Musashino-shi Taito-ku Chofu-shi Minato-ku Koganei-shi Suginami-ku Shinjuku-ku Kokubunji-shi Suginami-ku Shinjuku-ku Chofu-shi Minato-ku Setagaya-ku Edogawa-ku Koganei-shi Meguro-ku Kunitachi-shi Chiyoda-ku Chiyoda-ku Edogawa-ku Setagaya-ku Tama-shi Inagi-shi Komae-shi Mitaka-shi Kunitachi-shi Mitaka-shi Tama-shi Inagi-shi Komae-shi Meguro-ku Koto-ku Koto-ku Shibuya-ku Shibuya-ku Shinagawa-ku Hachioji-shi Hino-shi Fucyu-shi Chuo-ku Hachioji-shi Fucyu-shi Shinagawa-ku Chofu-shi Hino-shi Chuo-ku Minato-ku Chofu-shi Minato-ku Machida-shi Setagaya-ku Setagaya-ku Inagi-shi Komae-shi Meguro-ku Inagi-shi Machida-shi Ota-ku Tama-shi Komae-shi Meguro-ku Ota-ku Oshima-machi Niijima-mura Miyake-mura Hachijo-machi Ogasawara-mura Tama-shi Oshima-machi Niijima-mura Miyake-mura Hachijo-machi Ogasawara-mura Shinagawa-ku Shinagawa-ku

Machida-shi Machida-shi 1,500 or more establishments 1,500 or more establishments 100 or more establishments Ota-ku 40 or more establishments Ota-ku Toshima-mura Kozushima-mura Mikurajima-mura Aogashima-mura Toshima-mura Kozushima-mura Mikurajima-mura Aogashima-mura 1,000 to less than 1,500 establishments 1,000 to less than 1,500 establishments 10 to less than 100 establishments 10 to less than 40 establishments 500 to less than 1,000 establishments 500 to less than 1,000 establishments Less than 10 establishments Less than 10 establishments 100 to less than 500 establishments 100 to less than 500 establishments Less than 100 establishments Less than 100 establishments Source: MIC “Economic Census for Business Frame” Source: MIC “Economic Census for Business Frame” Source: TMG Bureau of Industrial and Labor Affairs Research Source: TMG Bureau of Industrial and Labor Affairs Research

Tokyo includes various-sized neighboring wards, cities, towns, and villages ranging from wards and cities with populations of 0.5 million or more to small towns and Tokyo includes a lot of information and communication-related companies and service-related companies and creativity-related industries are active. A lot of creative villages with populations of less than 10,000. There are many rural areas, islands, wards and cities with 20% or more of the proportion of the total population being business fields are concentrated mainly in the 23 Tokyo wards; i.e. the center of creativity-related industries in Japan. A lot of software, publishing, advertising, and design 65 or more years. This clearly highlights the aging status in urban areas. A lot of establishments are located in the 23 Tokyo wards and there are also many workers. services are located mainly in center and subcenter of Tokyo and many establishments are located in other wards and cities. A lot of designer fashion establishments are Some cities include large-establishments. The status of newly-organized establishments and abolished establishments in 2006 to 2009 shows that there are more of located in Shibuya Ward and neighboring areas which are attracting domestic and overseas attention as hubs for the latest fashion trends. Animation production only the latter than the former, indicating the difficulty in continuing businesses. has a few establishments, but they are concentrated mainly in Nerima Ward and Suginami Ward which are the center of the animation industry in Japan.

8 Industry and Employment in Tokyo − A Graphic Overview 2012 Industry and Employment in Tokyo − A Graphic Overview 2012 9 Overview of Tokyo’s Economy Economic Trends of Tokyo in 2011 The Economy in Japan and Tokyo Stayed at a Low Level in 2011 Due to Earthquake Disaster and World Economy

1 Japanese Economy Were Affected by Earthquake Disaster, the European Status, and the Strong Yen 2 Trade Balance Turned to Deficit During a 31 Year Interval. Production Affected by the Earthquake and Flood in Thailand (%) Indexes of business conditions (Nationwide) GDP growth rate by quarter (Nationwide) Trade value (Nationwide) Production, shipments, and inventory indices (Tokyo/ nationwide) 10 7.1 (%) (Compared to previous year/ 30 compared to same month of previous year) 130 110 20 5 Real 11.5 12.0 12.2 Import Value 8.1 10 2005 average = 100 120 0 8.6 0 1.4 −0.7 −10 −2.7 113.9 100 −8.0 110 2011 −20 Export Value −1.8 107.4 93.6 −5 −30 100 100.8 Nominal −40 96.2 90 2011 Monthly value (right axis) Inventory (Tokyo) −6.9 97.9 91.1 93.4 −10 (Trillion yen) (Trillion yen) Annual total 90 91.0 Production (Nationwide) 100 Export Value Import Value 7 83.9 5.8 79.4 81.3 Shipments (Tokyo) 83.9 5.6 −15 73.1 5.5 6 80 80 80 68.1 79.6 Production (Tokyo) −14.8 65.6 5.0 5 60 70 71.6 −20 4 70 40 3 60 1996 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 2001 02 03 04 05 06 07 08 09 10 11 2 2007 08 09 10 11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20 Note: CI, coincident index. Shadow part: contraction phase. Period from January, 1996 Note: October-December 2011 period (2nd preliminary). Seasonally adjusted. Previous 1 Note: The monthly values are seasonally adjusted. Annual inventory index: values in to December, 2011 is written. term comparison. Yearly calculation. 0 0 December of each year. December in Tokyo: preliminary Source: CAO “Indexes of business conditions (December 2011 revised release)” Source: CAO “Annual Report of National Accounts” 2007 08 09 10 11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: TMG “Industrial Indices” METI “Indices of Industrial Production” (1,000 yen) (Yen) Yen exchange rate in the foreign exchange market 20 Nikkei 225 stock average Note: Value of imports figures of 2011 and December are preliminary. 70 Source: MOF “Trade Statistics of Japan” 18.26 Value of machinery orders (Nationwide) 80 (100 billion yen) (100 billion yen) 77.85 18 Domestic corporate goods price index, corporate service price index 120 9 111.8 2011 Monthly value (right axis) 90 Annual total 106 2005 average = 100 8 100 104.11 7.3 16 Domestic corporate goods 104.6 100 7.2 110 US Dollar price index (Nationwide) 89.0 7 104 120 14 80 6 130 102 102.4 5 140 12 60 Euro 4 100 150 40 3 160 10 Corporate service price 98 8.72 index (Nationwide) 2 170 8.46 96.4 20 8 Closing gures 8.61 8.30 97.1 180 96 1 7.16 2001 02 03 04 05 06 07 08 09 10 11 7.05 0 0 6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2001 02 03 04 05 06 07 08 09 10 11 94 2007 08 09 10 11 Note: The US dollar/yen; central rate, average in the month. Euro/ yen; monthly average in Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovDec Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovDec TTS disclosed by the Tokyo-Mitsubishi UFJ bank. Shows the period from January, 2001 →2010 →2011 to December, 2011. Note: Shows the period from January, 2001 to December, 2011. Note: Private sector (exc. volatile orders). The monthly values are seasonally adjusted. Source: BOJ “Financial Markets” and Mitsubishi UFJ Research and Consulting Co., Ltd. HP Source: ©Nikkei Inc. materials Source: BOJ “Domestic Corporate Goods Price Index”; “Corporate Services Price Index” Source: CAO “Orders Received for Machinery”

Retail sales at large-scale stores (Tokyo 23-ku area) and convenience stores (%) Visitor arrivals and Japanese overseas travelers (Nationwide) Lethargy Apparent in Consumption; e.g. Decrease of Retail Sales of Department Stores and Supermarkets, and That of Visitor Arrivals 60 3 (Greater Kanto area), number of automobile registrations (Tokyo) 50 (Compared to previous year/ (%) 40 compared to same month of previous year) Consumer price index (Tokyo 23-ku area/nationwide) Number of new condominiums on sale 30 (Compared to previous year/ 30 1 (Compared to previous year/ compared to same month of previous year) 2011 20 13.8 11.5 Japanese overseas travelers 11.9 (Compared to same month of previous year) Nationwide (%) 10 40 compared to same month of previous year) 20 0 2.1 0 −0.1 −10 1.4 25.4 Convenience stores 12.8 −1.4 21.0 10 7.9 6.3 −20 −11.7 −1.3 −0.3 20 1.4 7.1 −30 −27.8 −1 0.6 1.2 −40 −62.5 Visitor arrivals 0 Supermarkets −0.4 −50 0.0 −3.1 −0.4 −60 −2 23-ku area 0 6.0 −3.8 −1.3 −2.0 −0.7 −3.7 −70 −10 Annual total 2011 Monthly Value (right axis) −3 −20 Department stores (10,000 people) Japanese overseas travelers (10,000 people) −15.5 −20.8 −20 −16.7 2,000 Visitor arrivals 146.1 160 102 −26.9 Automobiles 1,729 1,699 Consumer price index −40 128.2 140 (1,000 units) −30 101 2010 average = 100 (1,000 units) 1,500 120 100.2 2011 3.7 30 4 −40 100 Nationwide 24.3 23.7 100 99.6 Monthly value (right axis) 1,000 71.4 80 100.0 Annual total 3 −50 835 99.5 20 57.2 60 99 23-ku area 2.0 2007 08 09 10 11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 622 2 500 40 10 98 0.6 1 Note: Same-store sales for department stores and supermarkets, all-store sales for 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec convenience stores. Greater Kanto area consists of Ibaraki, Tochigi, Gunma, Saitama, 0 0 →2010 →2011 0 0 Chiba, Tokyo, Kanagawa, , Yamanashi, and . Total sales of 2007 08 09 10 11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 08 09 10 11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec standard-sized cars, compact cars, and minivans for automobiles. Note: Consumer price index is the total excluding fresh food. Source: METI “Monthly Report on the Current Survey of Commerce” Kanto Bureau of Economy, Source: Japan National Tourism Organization (JNTO) “Visitor Arrivals and Japanese Source: MIC “Consumer Price Index” Source: Real Estate Economic Institute Co., Ltd. “Condominium Market Trends” Trade and Industry materials Overseas Travelers”

The Japanese economy dropped greatly in 2011 because of the earthquake and has been recovering since. However, the pace of recovery slowed due to the state of world The value of machinery orders, which is an indicator of the capital investment, exceeded the previous year but has yet to recover to pre-Lehman Shock levels. economy; e.g. the government debt crisis in Europe. The indexes of business conditions in December exceeds that for January of the same year but the real GDP growth The consumption-related indicator shows that the consumer price index is sluggish nationally and in Tokyo; i.e. deflation is lengthening. The number of new rate is negative compared with the previous quarter in the 1st, 2nd and 4th quarters. Stock prices are sluggish because of damage from the earthquake, the debt crisis in condominiums on sale has broadly flattened from the previous year. Retail sales at department stores and supermarkets has fallen below the previous year due Europe, and the surging yen, which has reached historically high levels. Also the trade balance has turned to a deficit for the first time in 31 years because of increased fuel to withholding purchases after the earthquake but retail sales at convenience stores has increased due to more attention being given to convenience after the consumption for thermal power plants. On the other hand, production in Tokyo recovered slowly from the earthquake disaster and reached pre-earthquake levels (February) earthquake. In addition, the number of automobile registrations has decreased due to restricted supplies from the earthquake and the reaction of the eco-car tax in December. The domestic corporate goods price index increases because of the sudden rise of coal and oil products caused by the high global price of crude oil. reduction and subsidies of the previous year. The number of visitor arrivals after the earthquake has greatly decreased.

10 Industry and Employment in Tokyo − A Graphic Overview 2012 Industry and Employment in Tokyo − A Graphic Overview 2012 11 Overview of Tokyo’s Economy Economic Trends of Tokyo in 2011 Business Environment of SMEs and Employment Situation in Tokyo Picking up, But Still Severe

4 Management of Small and Medium Enterprises Have Recovered Slowly After the Earthquake 5 Employment Environments Continue to Be Harsh But Have Partially Improved Unemployment rate Number of workers displaced at the discretion of management Business conditions di usion index for SMEs by industry Cash ow di usion index for SMEs by industry (%) (%) 0 7 97.3 Overall Manufacturing Overall Manufacturing 100 (Compared to previous year/ 80 compared to same month of previous year) −10 −10 Wholesale Wholesale Retail −14.0 Retail 60 −17 −17.1 Services Services 6 40 2011 −20 −25 Tokyo −20 −19.5 −21.8 5.5 20 −27 −22.3 −24.0 5.1 0 −30 5.1 −29 −32 −27.2 4.8 −20 −2.0 −30 5 −28.7 5 Nationwide 4.5 −40 −17.9 −21.4 −19.4 −20.2 −40 −38 −37 −42 4.2 (1,000 people) −48 −41.4 4.5 −50 −50 −40 4 4.3 20 Monthly average 4.1 13.9 −46.4 15 12.4 −60 11.4 −50 3 10 8.1 −70 7.0 I II III IV I II III IV −60 5 −80 2006 07 08 09 10 11 2010 2011 0 2007 08 09 10 11 −90 2007 08 09 10 11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 08 09 10 11 Note: DI = % of “enough” enterprises - % of “tight” enterprises. st rd Source: TMG “Status of Capital Investment, Cash Flow etc. of Small and Medium Enterprises Note: Nationwide annual value and quarter values from 1 to 3 quarter in 2011 exclude Iwate, Note: Of new applicants, there are previous employers and those who were displaced Note: DI = % of “favorable” enterprises - % of “unfavorable” enterprises. in Tokyo” Miyagi, and prefectures. at the discretion of management Source: TMG “Business Conditions of Small and Medium Enterprises in Tokyo” Source: TMG, MIC “Labour Force Survey” Source: Tokyo Labour Bureau “Report on Employment Service” (Times) (%) Ordinary pro t of corporate enterprises (Nationwide) Ratio of active job openings to applicants Number of job classi ed listings (Kanto-Koshinetsu region) Percentage of actual capital investment by SMEs by industry 50 (Trillion yen) 1.6 (Compared to same month of previous year) 39.4 (%) 16 15.6 25 30 27.9 14 1.4 1.38 0 25 2011 −25 25.2 12 9.3 −40.1 Services 11.1 1.2 Overall 10 10.8 −50 20 21.3 19.3 Manufacturing 1.04 −70 −62.4 18.6 8 1.0 15 17.0 Wholesale 16.0 0.92 (10,000 cases) 2009 2010 2011 13.7 6 0.82 Tokyo 15 0.8 0.74 13.1 10 11.0 10.4 4 0.71 Retail 0.65 12 2 0.60 0.6 5 9 8.6 0 Nationwide 0 0.4 6

2001 2002 03 04 05 06 07 08 09 10 11 3 0.2 2007 08 09 10 11 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Note: Figures to the right indicate moving average for 4th Quarter. Note: Corporations with a capital of 10 million yen or more. Values are seasonally adjusted. 2007 08 09 10 11 Note: Total listings in pay magazines containing information on job classifieds information, free Source: TMG “Status of Capital Investment, Cash Flow etc. of Small and Medium Enterprises All industries excluding finance and insurance Note: Monthly values are seasonally adjusted papers and job classified inserts. The number of corporations compared after April, 2011: 52; in Tokyo” Source: MOF “Financial Statements Statistics of Corporations by Industry” after April, 2010: 59; after April, 2009: 62; in January to March, 2009: 64 Source: Tokyo Labour Bureau, MHLW “Report on Employment Service” Source: Association of Job Information of Japan materials

(%) O ce vacancy rate and average advertised rent (5 major wards) (yen/tsubo) Number of corporate bankruptcies Monthly non-scheduled hours worked Wages earners' monthly total cash earnings 8 20,000 (%) (Compared to previous year/ compared to same month of previous year) (%) (Compared to previous year/ compared to same month of previous year) (%) (Compared to previous year/ compared to same month of previous year) 7.2 Vacancy rate 7.2 20 3.0 7.0 11.6 3 8.4 15 1.0 10 6.3 Nationwide 10 1.3 9.0 2 −0.2 0.8 0.4 3.2 1 0.0 Nationwide 15,020 0 4.3 5 0.5 0.0 Nationwide 1.8 0 6 15,000 −4.4 1.7 0.1 13,650 13,470 −10 0 −1 −0.7 0.4 −6.7 −2.0 −6.3 −5 −2 −1.0 −2.6 0.0 −3 −20 Tokyo −10 Tokyo −4 Tokyo −30 −15 −5 4 10,000 −20 (10,000 yen) −4.8 (Cases) 80 Average advertised rent (Hours) 2011 2011 73.6 1,500 Monthly average 2011 (right axis) 12 11.8 11.9 11.5 11.2 11.0 Tokyo 1,174 60 2 5,000 Nationwide 55.2 1,061 1,041 1,032 10 1,000 43.0 41.5 41.2 8 40 33.0 31.7 31.7 34.8 0 0 6 27.3 500 Nationwide Tokyo III IV I II III IV 20 210 209 232 221 4 2010 2011 Tokyo 2 0 0 0 Notes: 5 major wards are Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku and 2007 08 09 10 11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 08 09 10 11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Shibuya-ku. Offices with 500-tsubo (approx. 1650m2) or more of rentable 2007 08 09 10 11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec floor space. Vacancy rate: end of each quarter. Average advertised rent: Note: Establishment with 5 or more employees. 2011 totals for Tokyo represent Note: Establishment with 5 or more employees. 2011 totals for Tokyo represent average value of each quarter Note: Bankruptcies with liabilities of 10 million yen or more. estimates by the Bureau of Industrial and Labor Affairs. estimates by the Bureau of Industrial and Labor Affairs. Source: CBRE K.K. “Japan Office Market View” Source: TMG “Enterprise Bankruptcies in Tokyo” (Tokyo Shoko Research, Ltd. Statistics) Source: TMG, MHLW “Monthly Labour Survey” Source: TMG, MHLW “Monthly Labour Survey”

The business condition diffusion index for small and medium enterprises in Tokyo fell largely overall, in particular, the retail trade fell after the earthquake but has The employment levels in Tokyo are still harsh but have partially improved. The unemployment rate has improved in the 4th quarter of 2011. The average monthly recovered slowly and almost reached January levels by December. The cash flow DI improved in the th4 quarter but the percentage of actual capital investment number of workers displaced at the discretion of management has decreased for 2 consecutive years but exceeded 2008 levels. On the other hand, the ratio of active broadly flattened, indicating the cautious stance of corporations. The ordinary profit of corporate enterprises with a capital of 10 million yen or more decreased in job openings to applicants, which dropped after the Lehman Shock has recovered slowly throughout the year. In addition, the number of job classified listings increased the 2nd quarter of 2011 but is recovering. Office vacancies continue to exceed 7% and the average advertised rent has decreased due to the high vacancy. In the after the second half of 2010 compared to the same month of the previous year. The number of non-scheduled hours worked in 2011 in Tokyo fell below the number for harsh corporate management environment, the average monthly number of corporate bankruptcies with an aggregate debt of 10 million yen or more fell below the the previous year due to the earthquake. In addition, because of reduced non-scheduled hours, wage earners’ monthly total cash earnings decreased. previous year for 2 consecutive years.

12 Industry and Employment in Tokyo − A Graphic Overview 2012 Industry and Employment in Tokyo − A Graphic Overview 2012 13